Why Marvell Stock Sank While Inphi Stock Skyrocketed Today
Shares of Marvell Technology Group (NASDAQ: MRVL) have sunk by 4% today, while Inphi (NASDAQ: IPHI) stock has skyrocketed 26% as of 12:05 p.m. EDT. The moves came after Marvell said it would acquire Inphi in a $10 billion cash-and-stock deal. Marvell is looking to boost its exposure to the data center and 5G cellular technology.
The offer includes $66 per share in cash and 2.323 shares of the combined company for each Inphi share. Inphi shareholders will own approximately 17% of the combined company. Marvell argues that the deal is highly complementary to its existing businesses, adding Inphi's electro-optics interconnect products to the mix in order to better address the data center market.
Image source: Marvell.
Source Fool.com